UK Government Announces DeFi Lending and Staking Consultation

July 21, 2022

In yet another development for the UK cryptocurrency sector, on 5 July 2022 the UK Government announced a consultation as to the taxation of cryptoasset loans and “staking” within the context of decentralised finance (“DeFi”). In particular, the UK Government is interested in ascertaining whether administrative burdens and costs could be reduced for taxpayers engaging in DeFi lending and staking as well as seeking to understand whether the tax treatment of such activities can be better aligned with the underlying economics of the transactions involved.

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